Call us now at 1-800-598-1178
to get started.
This page contains some
basic questions about loan modifications. If your question
is not covered here, please call us at the above number to discuss your
question. Our intent with these questions is to educate you about what
a loan modification is, how you qualify for a loan modification, and
how a loan modification can benefit you.
- What
is a loan modification?
A
loan modification is a change in the terms of a mortgage loan. The terms that can be changed include the
interest rate, payment amount, length of the loan, type of loan (e.g.
fixed
versus adjustable rate), and principal amount. A
loan modification may allow the arrears to be waived
or have them
added in to the principal of the loan.
- Why
should I get a loan modification?
The
objective of a loan modification is to help the borrower maintain
possession of
their home by providing payment terms they can meet that are also
acceptable to
the lender. Most often the borrower is
facing loss of their home via the foreclosure process when a loan
modification
is considered as a possible solution to the borrower’s problem.
- Can
a loan modification stop the foreclosure process?
Yes. Most borrowers can consider a loan
modification when they have missed one or more mortgage payments. In some cases lenders may consider a loan
modification even when no mortgage payments have been missed.
- Who
qualifies for a loan modification?
A
borrower who has experienced some form of hardship that affects their
ability
to make their mortgage payment and who has verifiable income may
qualify for a
loan modification.
- What
types of hardships might qualify for a loan modification?
The
following hardships may qualify you for a loan modification
- death of a spouse or co-borrower
- serious illness affecting ability to
earn income
- accident affecting ability to earn income
- medical bills
- divorce or marital separation
- change in interest rate on an adjustable rate
mortgage loan
- loss of employment
- reduction of income (e.g. hours or pay rate reduction)
- military duty
- incarceration
- business failure
- damage to property from natural disaster
- What
documentation do you require to determine if my situation qualifies for
a loan
modification?
The
following documents are required to apply for a loan modification.
- copy
of mortgage statement
- pay
stubs for two months or CPA-prepared profit and loss statements for 6
months if
self-employed
- two
months of bank statements (all pages), for self-employed the number is
6 months
of bank statements
- last
two years of tax returns
- photo
ID
- copy
of home insurance
- copy
of real estate tax bills (city and school district)
- explanation
of hardship
- How
much does a loan modification cost?
The
fee for a loan modification is 1% of the outstanding mortgage balance
for
balances over $250k or a minimum of $2500 (for balances of $250k or
less).
- What
happens to the fee I paid if a loan modification cannot be done in my
case?
If our
loan modification agents are unsuccessful in acquiring a loan
modification in
your situation, then the fee you paid is 100% refundable.
- Do
I need to have verifiable income to qualify for a loan modification?
Yes. You must have income that can be verified
from pay stubs or from business profit and loss statements.
- Can
I get a loan modification while I am in bankruptcy?
No. However, if you
expect to be emerging from bankruptcy, you may
want to explore a loan modification if the
ability to
make your mortgage payments will still be an issue when you are no
longer in
bankruptcy.
- Can
I get a loan modification on a HELOC?
No. A home equity line of credit (aka HELOC) does
NOT qualify for a loan modification.
- How
often can I apply for a loan modification?
You
can apply for loan modification once within a 12 month period unless
you
experience another major hardship.
- Can
I apply for loan modification if I am current with my mortgage loan?
In
some cases you can apply for loan modification while you are still
current with
your payments if you anticipate that a hardship you are experiencing
will soon
result in problems making your mortgage payments.
- How
long does it take to get a loan modification?
The
typical time frame to get a loan modification completed is 3 to 4
months.
- Can
I do a loan modification on my own without your help?
Yes. It is possible to do a loan modification on
your own. However, you should consider
carefully whether this is one of those times when it is worth paying a
professional to do what they are experienced at doing.
- Why
should I work with your organization to do a loan modification?
We
are referral agents for an attorney-based organization that has the
capability
to do loan modification nationwide. Our
agents have helped thousands of borrowers obtain loan modifications. If the efforts to get you a loan modification
are unsuccessful, then the fees you paid are 100% refundable to you.
If you have additional questions, or if you would like to start the
process to see if your situation qualifies for a loan modification, please
click here
to contact us.
Call us now at 1-800-598-1178
to get started.
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